Why does building a ladder of bonds potect against changes in interest rates?

Mathematics

1 answer:

alukav5142 [94]3 years ago

3 0

Answer:

Build a bond ladder to boost

Step-by-step explanation:

By using a bond ladder, you smooth out the fluctuations in the market because you have a bond maturing every year or so. The second reason for using a bond ladder is that it provides investors with the ability to adjust cash flows according to their financial situation.Sep 18, 2019

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How do you solve circumference

Simora [160]

Answer:

C=2(pi)r

Step-by-step explanation:

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2 years ago

:)Merry christmas eve may you guys please help me with this :)

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Calculus(Derivatives):

Zigmanuir [339]

$f(x)=x^3+x^2-5x-2$
$\implies f'(x)=3x^2+2x-5=(3x+5)(x-1)$

Critical points occur when $f'(x)=0$ , which happens for $x=-\dfrac53$ and $x=1$ .

Check the sign of the second derivative at each critical point to determine the function's concavity at that point. If it's concave ( $f''(x)$ ), then a maximum occurs; if it's convex ( $f''(x)>0$ ), then a minimum occurs.

You have

$f''(x)=6x+2$

and so

$f''\left(-\dfrac53\right)=-8$
$f''(1)=8>0\implies f(x)\text{ is convex at }x=1$

This means a maximum of $f\left(-\dfrac53\right)=\dfrac{121}{27}$ and a minimum of $f(1)=-5$ .